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|Anadarko Announces Joint-Venture Agreement for the Gulf of Mexico Lucius Development|
HOUSTON, TX, Jul 02, 2012 (MARKETWIRE via COMTEX) --Anadarko Petroleum Corporation (NYSE: APC) today announced it has signed a definitive agreement with an undisclosed party to enter into a joint-venture capital carry arrangement for Anadarko's ownership in the Gulf of Mexico Lucius development project. Under the terms of the agreement, Anadarko will be carried for $556 million, which is estimated to represent 100 percent of its expected capital obligation through the anticipated date of first production at Lucius. In exchange, Anadarko will convey a 7.2-percent working interest in the Lucius development and will continue as operator with a 27.8-percent working interest.
"This agreement further enhances the capital efficiency of our investment in the estimated 300-plus-million-BOE (barrels of oil equivalent) Lucius development," said Anadarko President and CEO, Al Walker. "We look forward to closing this agreement and working with our prospective partner and the other Lucius co-venturers to advance this project on time and on budget toward first production in the second half of 2014."
The agreement is expected to close during the third quarter of 2012, with an effective date of Jan. 1, 2012, and is subject to existing preferential purchase rights and other customary closing conditions.
The Lucius development is located approximately 230 miles offshore in the Gulf of Mexico in 7,200 feet of water. It includes portions of Keathley Canyon blocks 874, 875, 918 and 919. The project is being developed using a truss spar floating production facility that is currently under construction. The spar is being built with the capacity to produce more than 80,000 barrels of oil per day and 450 million cubic feet of natural gas per day.
Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2011, the company had approximately 2.54 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. For more information about Anadarko and APC Flash Feed updates, please visit www.anadarko.com.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including Anadarko's drilling risks, the ability to execute on production and development plans and the ability to consummate the transactions described in this news release. See "Risk Factors" in the company's 2011 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.
Cautionary Note to U.S. Investors: Effective Jan. 1, 2010, the United States Securities and Exchange Commission ("SEC") permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC's definitions for such terms. Anadarko references in this release the estimated ultimate recovery of the Lucius project and the SEC's guidelines strictly prohibit Anadarko from including such terms in filings with the SEC. U.S. investors are urged to consider closely the disclosure in Anadarko's Form 10-K for the year ended Dec. 31, 2011, File No. 001-08968, available from Anadarko at www.anadarko.com or by writing Anadarko at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas 77380, Attn: Investor Relations. This form may also be obtained by contacting the SEC at 1-800-SEC-0330.
SOURCE: Anadarko Petroleum Corporation
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